Facebook Antitrust Win May Have Broad Policy Implications
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Facebook Antitrust Win May Have Broad Policy Implications
"A November 18 federal trial court decision favoring Facebook is the first decisive win for a big tech digital platform in a suit brought by the federal government. District of Columbia Judge Jed Boasberg's opinion striking down the Federal Trade Commission's monopolization suit against Facebook appears sound and well-reasoned and will be hard to overturn on appeal. The decision also may have broader implications for U.S. antitrust suits brought against high tech firms."
"It stresses how tech markets have changed significantly in recent years, making restrictive market definitions, such as the one put forth by the FTC here, hard to defend. Antitrust cases that retard innovation by focusing on narrow conditions at one point in time may miss the bigger economic picture. The Case in a Nutshell In December 2020 the FTC (joined by 46 states) sued Meta, Facebook's parent company, in federal district court."
"In December 2020 the FTC (joined by 46 states) sued Meta, Facebook's parent company, in federal district court. It alleged that Facebook had monopolized an online "social networking market" by (among other tactics) acquiring then-rivals WhatsApp and Instagram. The Commission urged that Facebook be ordered to sell WhatsApp and Instagram to third parties in order to restore competition. After several years of procedural wrangling, the case eventually went to trial in April 2025. Judge Boasberg oversaw the proceedings, which featured extensive testimony and document review."
On November 18 a federal trial court judge struck down the Federal Trade Commission's monopolization suit against Facebook, delivering a significant victory for Facebook. The FTC, joined by 46 states, had alleged in December 2020 that Meta monopolized an online "social networking market" through acquisitions of WhatsApp and Instagram and sought divestiture. The court found the FTC's market definition and monopolization theory weak in light of rapid changes in tech markets and an extensive factual record. The decision emphasized that narrow, point-in-time antitrust analyses can retard innovation and may have broader implications for future enforcement against high-tech firms.
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